The four modes of transport – road, rail, sea and air – play a crucial role in supporting the national, state and local economies and ultimately, the community as it goes about its daily activities.
Each mode plays its part, be that pick-up and delivery to homes, key facilities and manufacturing precincts, haulage from mines to ports and airports for subsequent export, the rapid movement of perishable products to national and international markets, or long hauls between capital cities.
In 2010 in South Australia the Transport and Logistics (T&L) industry had turnover of $8.4 billion, representing 6.9% of Gross State Product, employed 29,0 00 people (about 31,0 00 Full Time Equivalents- FTE’s), and paid an estimated $355 million of direct taxes (excl. income tax).
This makes the T&L industry 40% larger than the wine industry, 40% bigger than the motor vehicle industry and 70% the size of the agricultural and mining sectors. The economic multiplier effect adds an additional $5.5 billion to the economic impact of the industry.
Source: Economic Impact Assessment & Strategic Analysis: South Australia’s Transport and Logistics Industry, July 2010 (Hudson Howells for SAFC – see http://www.safreightcouncil.com.au/)
The Transport and Logistics industry in South Australia deserves attention as a significant provider of economic activity – it supports a great number of jobs and generates substantial income and wealth for the community. It is therefore important to have effective policies in place to maximise opportunities in the sector.
State transport planning frameworks need to highlight the importance of a strategic infrastructure network. There must be a focus on strategic, multimodal core networks that are funded for the life of the asset, and are able to handle the major share of the future economic growth and resultant transport and logistics tasks.
http://www.safreightcouncil.com.au/Moving Freight 2013 Version 3
Road transport is an essential element of the Australian transport network. Due to Australia’s large land area and low population density, Australia relies heavily on road transport to move goods across the nation, for pick-up and delivery to intermodal rail terminals, airports and ports, delivery of consumer goods to retail outlets and homes, and the removal of waste products.
For the 2012/13 Year trucking industry revenue is estimated to be worth $48 billion to the Australian economy, and employs almost 250,000 staff across 47,000 businesses.
In 2010 in South Australia, the road transport sector had turnover of almost $3.9 billion, including generating $1.7 billion of value add and employed over 19,00 0 per sons (FTE’s). The road sector paid an estimated $180 million in direct taxes.
Rail is a significant contributor to Australia’s rural and regional economies, producing economic benefits worth around $7.7 billion each year10. Grain and mineral products are moved from up-country silos and aggregation points to ports for export, and intermodal services carrying containers and other freight travel between Australia’s capital cities and key regional centres on a daily basis.
The volume of freight moved by rail in Australia, measured in billion tonne kilometres has been growing strongly over recent years from around 136.9 billion tonne kilometres in 2000-01 to around 198.7 billion tonne kilometres in 2006-07, accounting for around 39% of total freight transported in 20 06-0711 . This represents an average growth rate of around 5.8% a year.
In 2010 in South Australia the rail industry (including pipeline and other transport) employed almost 20 00 persons with turnover of almost $730 million and growing strongly.
Shipping represents an industry that makes a massive contribution to the Australian economy, moving the vast majority of the nation’s international imports and exports, as well as performing a vital role in moving predominantly bulk products around the Australian coast.
Shipping in Australia carries more than $20 0 billion worth of cargo in and out of the country each year and employs more than 14,000 people either at sea or onshore.
In 2010 in South Australia the ‘water transport’ industry had turnover of almost $145m and employed an estimated 430 persons. This does not include turnover or employment on international vessels visiting South Australian ports.
Air transport enables rapid access to markets and expands links between businesses and communities. It is particularly significant for the movement of perishable produce, high-value items, and time sensitive freight. Greater aviation connectivity can increase a country’s international competitiveness and lead to improvements in productivity and economic growth.
Aviation contributes greatly to our economic strength as a nation, including as a major employer. The annual gross value added by the air and space industry to the Australian economy is nearly $6.3 billion. In August 2009, nearly 50,000 Australians were directly employed in the air and space industries, over 80 per cent of them full-time employees.
In 2010 in South Australia the air and space transport industry employed over 1800 persons with turnover exceeding $758 million.
Hire and reward warehousing and Postal services employs approximately 45,000 people and accounts for 2.2 percent of Australia’s value added. Employment in this area declined between 2009 and 2010 and in June 2014 Australia Post announced 900 redundancies with a likelihood of more to come as its traditional letter business declines. Against this is the strong growth of package deliveries resulting in increased online shopping. Technology is having a huge impact to these trades, with declining letter mail, increased internet shopping, and in the longer term the possibility of personalized deliveries by helicopter drone being trialed by Amazon, improved logging, tracking and receival of items through better use of IT.
Typically stock holding costs are just shy of 20 per cent of total logistics costs.
Warehouses are concentrated in and near to industrial and agricultural areas, and on urban fringes with good transport connections. Intermodal terminals are warehouses typically located near to each other in a location with good access to urban populations to generate efficiencies.
Current and planned intermodal terminals include:
- New South Wales: Moorebank, Enfield, Chullora, Minto Eastern Creek/Badgery’s Creek (both proposed)
- Victoria: Altona, Somerton, Dynon, Lyndhurst, Western Interstate Freight Terminal (proposed)
- South Australia: Penfield, Islington, Dry Creek
- Queensland: Acacia Ridge, Bromelton (proposed), Ebenezer (proposed)
- Western Australia: Kewdale, Forestfield
- Tasmania: Brighton
The Economic Significance of the Australian Logistics Industry. (Australian Logistics Council)